Currently, companies often do not withhold PIT on income from employment, work and services under civil contracts abroad, since such income does not come from a source in Russia. If an individual is a tax resident, income is to be declared in Russia, and additional PIT may be charged. The income of a non-resident individual is not taxable in Russia.
Thus, if the draft law is adopted, citizens working abroad under an employment contract or civil contract will, in some cases, be taxed in Russia. Such an approach may come into conflict with double tax treaties, under which employment income is often tax-exempt in a country where work is not performed.
The provisions on the taxation of payments under a remote work contract are to enter into force on 1 January 2024, and the provisions on the taxation of individuals performing civil contracts, on 1 January 2025.
Such income will be taxed at the 13% (15%) rate even for tax non-residents.